Startups in Mexico Need to Grow Quickly to Survive Crisis

Since 2020, during the pandemic, Mexican startups have had to redesign their growth strategies to stay active. Many companies, some considered unicorns, closed operations and caused a wave of layoffs due to bad decisions. 

However, investors still consider Mexico a perfect country for entrepreneurship due to its proximity to the United States and South America. Likewise, entrepreneurship in Mexico is responsible for 80% of the country's jobs and contributes more than 50% of GDP, according to reports from the Ministry of Economy.

The landscape for entrepreneurs is uncertain. They practically live and breathe failure: Revenue misses expectations during the first year. An expensive marketing campaign may not be accurate. An entire startup crashes and burns just as quickly as it grew. All these reasons bring up one question: Why do many startups fail? The reality is that only 1 in every 10 startups succeeds. From budgeting apps to legal matchmaking services, businesses across every industry see more closures than billion-dollar success stories. And a whopping 10% of startups fail before they reach their second year. Understanding the propensity for failure can help business owners manage expectations. And if entrepreneurs know why startups fail, they can create a business with some cautionary tales in mind.

On the other hand, with the right approach, founders can increase their chances of success despite the odds. At HubSpot, we work to lead companies with technological tools to boost their growth by pushing: 

1. Innovation and Efficiency: New technological tools often come with innovative features and functionalities that can help entrepreneurs streamline their processes, automate tasks, and increase overall efficiency. Staying abreast of the latest tools allows entrepreneurs to adopt technologies that can give them a competitive edge. 
2. Stay Competitive: In a constantly changing business landscape, being competitive is non-negotiable. Adopting new system tools can give entrepreneurs a competitive advantage by enabling them to stay ahead of industry trends, offer improved products or services, and respond more quickly to market demands.
3. Cost Savings: New tools sometimes offer cost-effective solutions compared to traditional methods. Entrepreneurs who stay informed about the latest tools may find opportunities to reduce costs, optimize resource allocation, and improve their bottom line. At HubSpot, we understand that founders always look to protect their expenses and that’s the main reason why they do not consider acquiring technological products, so, we offer tools for free to be part of their growth. 
4. Adaptability to Change: The business environment is dynamic, and entrepreneurs need to be adaptable. Embracing new tools allows them to adapt to changing market conditions, customer preferences, and industry standards. This adaptability is crucial for long-term success.
5. Access to New Markets: Some tools provide entrepreneurs with the capability to enter new markets or reach a broader audience. This could include tools for online marketing, social media management, or e-commerce platforms that enable businesses to expand their reach beyond traditional boundaries.
6. Risk Mitigation: Staying updated on new tools allows entrepreneurs to identify and adopt technologies that can help mitigate risks. This is a very serious topic. According to Etek, an information security solutions provider in Latin America, Mexico faces a challenging panorama, reporting an average of 1,607 cyberattacks weekly during the first half of 2023.
7. Networking Opportunities: Attending events or forums where entrepreneurs can discover and discuss new tools provides valuable networking opportunities. Building a network within the industry can lead to partnerships, collaborations, and shared insights that can benefit the business.
8. Customer Satisfaction: Utilizing CRM tools can contribute to improved customer experiences. Whether through better customer service platforms, user-friendly interfaces, or personalized marketing tools, staying current with technology can enhance customer satisfaction.
9. Learning and Growth: The process of exploring and adopting new tools is a learning experience. It allows entrepreneurs to expand their knowledge and skill set, fostering personal and professional growth. Continuous learning is vital for adapting to the evolving demands of entrepreneurship.

At this point, we are thrilled to announce HubSpot for Startups through Bootstrap LATAM, a free program for founders created by HubSpot over 10 years ago and designed to help entrepreneurs to grow their business. To get started, founders can apply for Bootstrap LATAM here. Upon approval, they will receive a link to join the HubSpot for Startups program.

HubSpot for Startups is committed to democratizing the startup landscape, not just for founders with funding, but for entrepreneurs all over the world. We believe in investing in emerging startup ecosystems around the globe. HubSpot for Startups was once only available to founders who had received funding through known accelerators and VC firms; however, through Bootstrap LATAM, any founder in the region can apply for these powerful startup perks.

Bootstrap LATAM not only serves to provide valuable software discounts and education to founders in Latin America, but also to raise awareness of all HubSpot’s free tools, content, and resources for founders.

Startup business owners are no strangers to the struggle of getting a business off the ground. Whether they’re trying to market a new product or are struggling to keep the doors open, they know that failure isn't unusual in this industry.

Entrepreneurs often find it important to keep meeting and exploring new tools for several reasons, but mostly, to survive in a competitive market such as Mexico.